INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 73

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.
-A [viatical settlement | guaranteed purchase option] is when an insured sells an interest in the life insurance policy to an investor,who then becomes the policy's beneficiary.

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Corporate Policies

Guidelines and rules established by a corporation to govern its actions and ensure compliance with legal and ethical standards.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make strategic decisions for a corporation.

Corporation

A legal entity that is separate and distinct from its owners, which can own assets, incur liabilities, and engage in business and legal activities.

Limited Liability

A legal structure that protects individual investors or company owners from being personally responsible for company debts and liabilities beyond their investment.